Wednesday, 9 February 2022

Ministers statements: commercial tenancy relief scheme

Ms PULFORD (Western Victoria—Minister for Employment, Minister for Innovation, Medical Research and the Digital Economy, Minister for Small Business, Minister for Resources) (12:41): I rise to update the house on support that our government is providing to small and family businesses that are continuing to do it tough as a consequence of the omicron spread throughout the community in recent months. Last week we finalised new regulations under the commercial tenancy relief scheme that will extend its operation until 15 March. Under the updated regulations, eligible commercial tenants with an annual turnover of $10 million or less who have suffered a decline in turnover of at least 30 per cent due to COVID-19 will be able to access the scheme. Commercial tenants need to demonstrate their decline in turnover by comparing January 2022 with January 2020.

As with previous versions of the scheme, landlords will be required to provide proportional rent relief to their commercial tenants in line with the reduction in turnover. Of the balance, at least half the rent must be waived, with the remainder to be deferred. The freeze on rent increases will continue, as will the moratorium on evictions. The vast majority of landlords and tenants will continue to negotiate in good faith, as has been a hallmark of this scheme in its two previous iterations, and in doing so will most of the time reach agreement. The Victorian Small Business Commission provides information and free mediation to tenants and landlords if help is needed for the parties to reach an agreement. Eligible commercial landlords will continue to receive support from the Victorian government, with more details on a new round of the Commercial Landlord Hardship Fund to be announced shortly.